The informal currency exchange market in Cuba remains steady for the second consecutive day. As of 8:00 a.m. on this Monday, the U.S. dollar is valued at 370 CUP, and the euro at 390 CUP, both rates reached last week as reported by the independent outlet elTOQUE. The MLC also remains unchanged, priced at 260 CUP, a rate it reached on May 25, following a slight decrease.
Exchange Rates as of May 26, 2025 - 8:18 a.m. in Cuba:
- U.S. Dollar (USD) to CUP according to elTOQUE: 370 CUP
- Euro (EUR) to CUP according to elTOQUE: 390 CUP
- MLC to CUP according to elTOQUE: 260 CUP
Forecast for Cuba's Informal Currency Market for the Rest of the Month
According to the latest report from the Observatory of Currencies and Finance of Cuba (OMFi), both the dollar and the euro have seen an increase in value in recent days, maintaining a relative stability. However, it's anticipated that their rates might remain stagnant in these final days of May due to a growing willingness to sell.
The Cuban economist based in Colombia, Pavel Vidal, highlighted in the report that the temporary surplus of dollars in the market could disrupt the upward trend of the U.S. currency observed since March. His predictions for the end of the month suggest rates of about 357-368 pesos per dollar and 372-383 pesos per euro, while the MLC might fluctuate between 255-265 pesos.
Impact of Dollarization on Cuban Economy
Despite the slight slowdown anticipated, the report points out that the dollarization process is driving the increased demand for U.S. currency. This trend is delicate and could have serious implications for Cuban citizens, including the rising costs of goods sold by private businesses that import in foreign currencies and then sell in pesos, leading to price hikes to secure profits.
As widely recognized, another consequence of increased dollar consumption is the widening gap between those with access to foreign currencies and those without. Amidst this scenario, exacerbated by ongoing and prolonged power outages, experts advise citizens with access to foreign currencies to hold onto them, while remaining mindful of the national currency.
Currency Conversion for U.S. Dollars and Euros to Cuban Pesos (CUP)
Here are the equivalencies for each available banknote in euros and U.S. dollars based on the exchange rates for May 26:
U.S. Dollar (USD) to Cuban Peso (CUP):
- USD 1 = 370 CUP
- USD 5 = 1850 CUP
- USD 10 = 3700 CUP
- USD 20 = 7400 CUP
- USD 50 = 18500 CUP
- USD 100 = 37000 CUP
Euros (EUR) to Cuban Peso (CUP):
- EUR 1 = 390 CUP
- EUR 5 = 1950 CUP
- EUR 10 = 3900 CUP
- EUR 20 = 7800 CUP
- EUR 50 = 19500 CUP
- EUR 100 = 39000 CUP
- EUR 200 = 78000 CUP
Understanding Cuba's Black Market Exchange Rates
Why are exchange rates in Cuba's black market different from official rates?
The black market rates often reflect the supply and demand dynamics in Cuba more accurately than official rates, which may be controlled by government policies.
What factors influence the stability of the black market exchange rates in Cuba?
Factors include economic conditions, government regulations, availability of foreign currencies, and external economic pressures.